Elwood Nursery reported a pretax operating loss (before taxes) of $50,000 for financial reporting and tax purposes in 2016. The enacted tax rate is 40% for 2016 and subsequent years. Assume that Elwoods requests a refund of taxes already paid by electing a loss carryback. Taxable income, tax rates, and income taxes paid in Elwood's first four years of operations were as follows: Taxable income Tax rates Taxes paid 2012 $30,000 30% $9,000 2013 35,000 30% 10,500 2014 42,000 35% 14,700 2015 40,000 40% 16,000 Required: 1.) Prepare the journal entry to record Elwood's income taxes for the year 2016. Show well-labeled computations. (2 points). Date Account Name Debit Credit 2.) Compute Elwoods's net loss for 2016. Hint: Updated net loss will include any tax benefit from loss carryback. (1 point)